According to city records, Sandusky City Commissioners unanimously approved an economic development loan of $45,000 for The Admiral's Daughter in October 2006.

"The timing of the closing came as both a surprise and disappointment," commission president Dennis Murray Jr. said. "I would have thought that this would have been a strong summer for them."

Murray said that when the store officially closes, the city will issue a notice that repayment of loan is due as prescribed in the revolving loan fund agreement issued by the city in 2006.

"All the money in the world is not going to bring customers into the store," Mary Ann Peitz said.

When the loan was issued, the store was in the process of reinventing itself from a basket and gifts store to a retailer of specialty women's clothing, with the gift items taking a more secondary role. Two years ago, the shop also added a gallery featuring the work of local artists.

Mary Ann Peitz said the new shop never had a chance to get its feet on the ground before the economy started to go downhill.

"The closure is permanent," Bryan Peitz said. "We may open a store again in the future, but it will not be in the local area."

All of the items in the store are 25 percent off, except for consignment items.

Lippus said the economy is affecting all business, not just the ones downtown.

"We wish that things could turn around for all of Ohio, not just us," Lippus said.